Earnings Alerts

Global Payments (GPN) Earnings: 2Q Performance Meets Estimates, Reaffirms Growth Outlook

  • Global Payments reported adjusted operating income of $1.05 billion, which is a 0.2% increase year-over-year and aligns with estimates.
  • Adjusted net revenue rose by 1.6% year-over-year to $2.36 billion.
  • Merchant Solutions adjusted revenue matched estimates at $1.83 billion, reflecting a 1.1% year-over-year increase.
  • Issuer Solutions adjusted revenue climbed to $547.4 million, surpassing the estimate of $542.6 million and showing a 4% year-over-year growth.
  • Operating expenses were significantly reduced by 23% year-over-year to $1.53 billion, below the estimated $1.93 billion.
  • The adjusted earnings per share, including stock-based compensation, came in at $3.10, slightly higher than the estimated $3.08.
  • The company reaffirmed its full-year 2025 constant currency adjusted net revenue growth outlook of 5% to 6%, excluding dispositions.
  • Adjusted earnings per share growth is now expected to be at the high end of the 10% to 11% range.
  • The company anticipates an annual adjusted operating margin expansion of slightly more than 50 basis points, excluding dispositions.
  • CEO Cameron Bready emphasized the positive results and ongoing organizational transformation.
  • The business’ solid forward momentum was highlighted as part of its strategic execution and transformation agenda amidst a stable macroeconomic environment.
  • Analyst ratings include 11 buys, 16 holds, and 3 sells.

Global Payments on Smartkarma

Global Payments has garnered positive analyst coverage on Smartkarma, with insights from reputable analysts like Baptista Research and Garvit Bhandari. Baptista Research‘s analysis titled “Integration & Harmonization of Technology Platforms To Establish As A More Agile & Responsive Player In The Industry!” commends Global Payments Inc. for its steady performance in Q1 2025, showcasing over 5% constant currency adjusted net revenue growth and a noteworthy 11% growth in constant currency adjusted earnings per share compared to the previous year. Despite challenges such as foreign currency headwinds, the company is maintaining its growth trajectory.

Similarly, Garvit Bhandari‘s report “Global Payments Inc. (GPN) Financial Factsheet – Growth, Valuation and Peer Comps” highlights GPN’s strong Q1 2025 results, significant discount to peers in trading, and the potential for margin expansion and double-digit adjusted EPS growth for FY 2025. The sale of the Issuer Solutions segment and acquisition of Worldpay are expected to simplify operations and drive growth. The analysts’ bullish sentiments underscore Global Payments‘ promising outlook in the industry.


A look at Global Payments Smart Scores

FactorScoreMagnitude
Value5
Dividend2
Growth4
Resilience4
Momentum2
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Global Payments Inc., a company providing electronic transaction processing and services worldwide, is set for a promising long-term future based on the Smartkarma Smart Scores. The company boasts high scores in Value, Growth, Resilience, and an overall solid outlook. With a top score in Value, Global Payments is perceived as a strong investment opportunity relative to its current price. Furthermore, impressive scores in Growth and Resilience indicate a company with potential for expansion and the ability to weather economic challenges. Although the Dividend and Momentum scores are lower, the overall positive outlook suggests a sturdy foundation for Global Payments‘ future growth.

Global Payments Inc. stands out in the electronic transaction processing sector, catering to financial, corporate, government, and merchant sectors globally. Offering a range of services including funds transfer, merchant accounting, and Internet services, the company plays a vital role in facilitating seamless transactions for its diverse client base. With solid Smartkarma Smart Scores in key areas such as Value, Growth, and Resilience, Global Payments demonstrates its strategic positioning for long-term success in the competitive market landscape. Investors eyeing a company with strong fundamentals and growth potential may find Global Payments to be an enticing option for their portfolios.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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